EU’s Bold Investment In Clean Energy Infrastructure For A Sustainable Future

The EU is making significant investments in energy infrastructure to support its transition to cleaner energy. Building modern cross-border networks for transporting and storing energy is crucial for Europe’s energy security. These interconnected networks help reduce energy costs for consumers, ensure a stable supply, and are vital for integrating renewable energy into the system, especially during times of geopolitical tension.

As the EU shifts towards cleaner energy, new technologies like rooftop solar panels, heat pumps, electric vehicles, and hydrogen production are driving this change. However, this shift puts more pressure on energy infrastructure. By 2030, the EU’s electricity consumption is expected to rise by 60%. To meet this demand, the European Commission’s Grid Action Plan estimates that €584 billion in investment will be needed by 2030. Additional funds will be required to build the EU’s hydrogen infrastructure.

In a recent letter, President von der Leyen emphasized the need for more investment in clean energy infrastructure. She highlighted plans for an Electrification Action Plan to ensure a smooth industrial transition powered by clean, homegrown electricity. A Clean Energy Investment Strategy will also help prioritize investments, including those in hydrogen.

The EU’s energy infrastructure policy aligns with its goal of climate neutrality by 2050. The policy aims to reduce bureaucratic delays and encourage cross-border infrastructure projects by providing faster approval processes and funding opportunities. To focus on the most important projects, the EU has identified 11 priority corridors and three thematic areas. The corridors cover areas like electricity, hydrogen, and offshore grids, while the thematic areas focus on smart electricity grids, gas grids, and CO2 networks.

Projects within these areas can apply for Project of Common Interest (PCI) or Project of Mutual Interest (PMI) status. PCIs are cross-border energy projects that benefit at least two EU countries. Since 2023, the list also includes PMIs, which involve cooperation between EU and non-EU countries.

Selected projects enjoy faster planning and approval processes, greater visibility to investors, and benefits like reduced administrative costs through streamlined environmental assessments. These projects also have improved rules for cost-sharing between countries. Additionally, PCIs and PMIs can apply for funding from the Connecting Europe Facility to support their work.

A platform has been developed to provide detailed information on PCI and PMI projects, including geographic locations, implementation plans, and potential EU financial support. There is also an ongoing call for cross-border energy projects to apply for PCI or PMI status, with deadlines in November and December, depending on the type of energy infrastructure.